Nowadays, it is relatively easier to afford a car. With a range of loan options, people are able to cherish the dream of owning a vehicle. People are familiar with what is car insurance, its advantages and coverage.
Car insurance will protect you in the event of an unfortunate incident. But car insurance is not only about financial protection when a liability happens. It would be helpful if you are aware of specific things while opting for car insurance.
One such thing is RTI. RTI or Return to Invoice cover is an add-on offered to you by the insurance company. This add-on allows you to receive compensation equal to the invoice value of the vehicle. The claim applies when a car is stolen or when it's beyond repair. Here are some important things to know about RTI.
When RTI is concerned, it implies that the insurance company will return the value of the vehicle equal to the one mentioned on the original invoice of the car. Note that it is offered by the insurance companies in the form of extra coverage. The decision to include RTI in car insurance lies with the car's owner. Moreover, it is not mandatory by the law to opt for RTI as an add-on.
In a normal insurance cover, the maximum amount of claim you can make is prohibited to its IDV. RTI is an add-on option that helps in covering the gap between the IDV and invoice value of the car. Here IDV refers to Insured Declared Value. The best thing about RTI is that it fetches you the on-road price of your car. In short, there is no depreciation when you opt for RTI as an add-on in your car insurance.
Here are some benefits you would avail of by opting for RTI as an add-on.
As RTI is an add-on, you have to purchase it with your vehicle's insurance policy. Add-ons can increase the coverage's scope and make it personalized. But note that RTI is not a free add-on and thus many people refrain from purchasing it.
No doubt, car theft has been a menace in India. Many people spend their hard-earned money to buy a car. However, opting for RTI will make you eligible to receive the invoice value of the car.
If you are planning to buy a new car, then always prefer including RTI as an add-on in your car insurance. You would be able to avoid untoward incidents in the presence of RTI as an add-on.
But note that there are certain cases in which RTI is not applicable. For instance, RTI is not applicable incase of a third-party policy. Moreover, you wouldn't be able to opt for the RTI for an older car. You are not liable to make a claim against the RTI add-on for any other damage other than thefts.
So as you can see, there are various beneficial aspects of opting for RTI. Opt for RTI today and safeguard your new car.
